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HEROES

CBS Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CBS)") else Response.Write("(NYSE: CBS)") end if %> rose $2 1/16 to $29 1/4 after announcing it will offer up to a 20% stake in its radio and outdoor advertising businesses in an initial public offering before the end of the year. The new entity will be called Infinity Broadcasting and will be piloted by Mel Karmazin, CBS' current president and COO. Karmazin built the old Infinity into a radio powerhouse largely on the back of the popularity of number one client Howard Stern. He then sold the company to CBS (then Westinghouse Electric) in 1996. After the transaction, CBS shareholders will be left with 18 TV stations, up to an 80% stake in Infinity, and the Tiffany network itself, which some analysts believe is actually losing money. Infinity shareholders, however, will own the TDI billboard business and a 155 station-strong radio operation that has experienced double-digit revenue and cash flow growth over the past six consecutive quarters.

Medical tissue cohesive products maker Closure Medical Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CLSR)") else Response.Write("(Nasdaq: CLSR)") end if %> gained $4 3/16 to $25 15/16 after the FDA approved the company's Dermabond adhesive for use in emergency rooms as a less traumatic and time-consuming alternative to sutures and staples for closing certain types of wounds. Dermabond forms a polymer with strong adhesive properties similar to space-age aerospace adhesives and that favorite product of handymen everywhere, "Super Glue." To help get the word out about Dermabond, Closure has signed an eight-year marketing and distribution deal with Johnson & Johnson's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JNJ)") else Response.Write("(NYSE: JNJ)") end if %> Ethicon subsidiary, the 800-pound gorilla of the estimated $2.6 billion worldwide suture market. For Closure, the trick going forward will be to leverage Ethicon's well-established distribution network and obtain quick acceptance of Dermabond, but without competing too much with its supplier's own products.

Martinsville, Virginia-based MainStreet Financial Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSBC)") else Response.Write("(Nasdaq: MSBC)") end if %> jumped $7 7/8 to $33 3/8 after agreeing to be acquired by fellow banking company BB&T Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BBK)") else Response.Write("(NYSE: BBK)") end if %> for $554.3 million in stock, or $38.87 per MainStreet share. BB&T fell $1 1/2 to $30 11/16. Fools in the Washington, D.C. area have heard the pitter-patter of the bank's footsteps into the region for months now, as BB&T expands northward out of its North Carolina stronghold. First to go was Franklin Bancorporation, which was gobbled up last December. Then Maryland Federal Bancorp was consumed in a $265.3 million stock swap in February. However, BB&T's quiet march on Washington has been largely overshadowed by the larger and more publicized advances into the capital region by its North Carolina brethren NationsBank <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NB)") else Response.Write("(NYSE: NB)") end if %>, First Union <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FTU)") else Response.Write("(NYSE: FTU)") end if %> and Wachovia <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WB)") else Response.Write("(NYSE: WB)") end if %>.

Electronic connectors maker Berg Electronics Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BEI)") else Response.Write("(NYSE: BEI)") end if %> took off for a $10 7/16 gain to $32 after accepting a $35 per share cash buyout bid from France's Framatome Connectors International. Framatome will also assume about $400 million in Berg debt. The purchase price represents a rich 62% premium to Berg's closing price of $21 9/16 per share yesterday and values the firm at 11.8 times its trailing earnings before interest, taxes, depreciation, and amortization (EBITDA). With combined fiscal 1997 revenues of about $1.78 billion, the new entity will be in roughly the same league with rival Molex <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MOLX)") else Response.Write("(Nasdaq: MOLX)") end if %>, which logged $1.54 billion in revenues last year. AMP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMP)") else Response.Write("(NYSE: AMP)") end if %>, with revenues of $5.7 billion in fiscal 1997, is still heads and tails the top dog in the electrical connectors biz, though.

QUICK TAKES: Portland, Oregon-based electric utility PacifiCorp <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PPW)") else Response.Write("(NYSE: PPW)") end if %> gained $1 1/8 to $23 1/8 after appointing former Dow Chemical Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DOW)") else Response.Write("(NYSE: DOW)") end if %> executive Keith McKennon as its new CEO. McKennon has served as PacifiCorp's chairman since 1994... Toaster maker Toastmaster <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TM)") else Response.Write("(NYSE: TM)") end if %> added $1/4 to $6 3/8 after Juiceman and Farberware kitchen products designer Salton/Maxim Housewares <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SALT)") else Response.Write("(Nasdaq: SALT)") end if %> said it would buy the company for $7.00 per share in cash and about $47.9 million in assumed debt... Credit card and auto loan servicer Advanta Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADVNA)") else Response.Write("(Nasdaq: ADVNA)") end if %> gained $15/16 to $12 1/16 after announcing a 2 million share buyback plan... Mining and papermaking machinery manufacturer Harnischfeger Industries <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HPH)") else Response.Write("(NYSE: HPH)") end if %> regained $15/16 to $17 13/16 after falling yesterday on news that it will cut 20% of its workforce in an effort to reduce costs.

Drug developer ISIS Pharmaceuticals <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ISIP)") else Response.Write("(Nasdaq: ISIP)") end if %> picked up $9/16 to $9 13/16 after the FDA approved its Vitravene drug for the treatment of cytomegalovirus retinitis, a disorder common in AIDS patients that can lead to blindness and other eye problems... Women's clothing designer St. John Knits <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SJK)") else Response.Write("(NYSE: SJK)") end if %> bounced back $1 7/8 to $20 3/8 after dropping 30% yesterday following a warning that its fiscal Q3 earnings would fall short of expectations. After the close, the company announced a plan to buy back up to 1 million of its outstanding shares. Bear Stearns also helped out this morning by raising its rating on the company to "buy" from "attractive"... Life and health insurer Provident Companies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PVT)") else Response.Write("(NYSE: PVT)") end if %> provided its shareholders with a $7/8 gain to $34 5/8 after the company was chosen to replace Bay Networks <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAY)") else Response.Write("(NYSE: BAY)") end if %> on the Standard & Poor's 500 Index. Bay is being acquired by Northern Telecom <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NT)") else Response.Write("(NYSE: NT)") end if %>.

Laurinburg, North Carolina-based Scotland Bancorp <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: SSB)") else Response.Write("(AMEX: SSB)") end if %> gained $2 to $10 7/8 after agreeing to be acquired by Centura Banks <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CBC)") else Response.Write("(NYSE: CBC)") end if %> for $23 million in cash, or $11.75 per Scotland share... Biotech firm EntreMed <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ENMD)") else Response.Write("(Nasdaq: ENMD)") end if %> rose $2 3/8 to $20 3/4 after receiving a patent for its Angiostatin protein, which has exhibited some cancer killing traits in studies... Drive train remanufacturer and distributor Aftermarket Technology <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATAC)") else Response.Write("(Nasdaq: ATAC)") end if %> shifted into high gear, rising $1 to $11 after saying it will buy back up to 350,000 of its outstanding shares. The company said certain insiders are also currently planning to buy up to 200,000 shares.

Long-distance phone service wholesaler ITC DeltaCom <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ITCD)") else Response.Write("(Nasdaq: ITCD)") end if %> picked up $3 to $35 1/4 after receiving upgrades from Wheat First Union and Merrill Lynch... Andover Bancorp <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ANDB)") else Response.Write("(Nasdaq: ANDB)") end if %> rose $2 1/2 to $36 on continued speculation that the bank will be acquired... Pharmaceutical developer COR Therapeutics <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CORR)") else Response.Write("(Nasdaq: CORR)") end if %> gained $1 to $10 1/2 after Hambrecht & Quist reiterated its "strong buy" rating with a 12-month price target of $28 per share... Toys and molded plastic products manufacturer Ohio Art Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: OAR)") else Response.Write("(AMEX: OAR)") end if %> picked up $3 to $24 3/4 after reporting fiscal Q2 EPS of $0.34 compared to a $2.60 per share loss a year ago.

GOATS

Radio broadcasting company Chancellor Media <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMFM)") else Response.Write("(Nasdaq: AMFM)") end if %> was tuned out for a $2 loss to $42 3/4 after announcing it will acquire Capstar Broadcasting Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CRB)") else Response.Write("(NYSE: CRB)") end if %> in an all-stock transaction valued at $4.1 billion, including $1.785 billion in debt and preferred stock. The deal is expected to be accretive to 1999 after-tax cash flow, and the combined company will be the largest radio broadcaster in the country with 463 stations in 105 markets. Shareholders in Capstar, which lost $2 3/16 to $19 5/16, will receive 0.48 share of Chancellor Media stock, which is subject to upward adjustment if Capstar's 1998 cash flow exceeds certain targets. The merger is expected to be completed in the second quarter of next year. The two companies already have some ties to each other -- the largest shareholder of both companies is Hicks, Muse, Tate & Furst Inc., which owns 15% of Chancellor and 59% of Capstar. After the merger, Hicks Muse will hold a 25% stake in the new and improved Chancellor Media. Conveniently, Hicks Muse Chairman and CEO Thomas Hicks, who serves as chairman of both Chancellor and Capstar, will continue as chairman of the combined company.

Internet search engine and portal company Excite <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: XCIT)") else Response.Write("(Nasdaq: XCIT)") end if %> tumbled $4 15/16 to $34 7/16 after The Wall Street Journal's "Heard on the Street" column reported that the way the company booked a one-time charge in connection with its marketing deal with Netscape Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NSCP)") else Response.Write("(Nasdaq: NSCP)") end if %> may distort future earnings. For the privilege of selling ads and sharing revenues for co-branded services on Netscape's Netcenter site, Excite agreed to cough up $86.1 million in cash and stock warrants ($70 million in cash). The company then simply turned around and wrote off two-thirds of that as an unusual one-time charge just two months after signing the deal. But Netscape, which happens to use the same accounting firm, opted not to take a one-time gain and instead is conservatively booking the fee over the span of the two year contract. Excite's accounting method may also raise eyebrows at the SEC, which is already frowning on the frequency of one-time charges.

Major U.S. banks, brokerage firms, and financial services companies fell sharply today on concern that Russia's economic woes and debt restructuring plan may cut into profits. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JPM)") else Response.Write("(NYSE: JPM)") end if %> dropped $13 3/16 to $104 3/4, Morgan Stanley Dean Witter <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MWD)") else Response.Write("(NYSE: MWD)") end if %> lost $6 7/16 to $69 5/8, Merrill Lynch <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MER)") else Response.Write("(NYSE: MER)") end if %> sank $6 5/16 to $78 5/16, Lehman Brothers <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LEH)") else Response.Write("(NYSE: LEH)") end if %> was hit for a $7 1/4 loss to $50 7/16, Citicorp <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CCI)") else Response.Write("(NYSE: CCI)") end if %> was crushed for a $11 7/8 loss to $122, Citicorp merger partner Travelers Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TRV)") else Response.Write("(NYSE: TRV)") end if %> was cut $3 3/4 to $50 7/8, Chase Manhattan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CMB)") else Response.Write("(NYSE: CMB)") end if %> tumbled $6 to $58 1/4, NationsBank (NSYE: NB) pulled back $4 1/4 to $65, NationsBank merger partner BankAmerica <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAC)") else Response.Write("(NYSE: BAC)") end if %> tanked $3 7/8 to $73 3/4, American Express <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AXP)") else Response.Write("(NYSE: AXP)") end if %> sold off $6 3/16 to $91, BankBoston <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BKB)") else Response.Write("(NYSE: BKB)") end if %> fell $2 3/8 to $39, Donaldson, Lufkin & Jenrette <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DLJ)") else Response.Write("(NYSE: DLJ)") end if %> slid $4 1/2 to $40 7/8, Bankers Trust <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BT)") else Response.Write("(NYSE: BT)") end if %> was slashed $8 5/16 to $83 13/16, Equitable Cos. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EQ)") else Response.Write("(NYSE: EQ)") end if %> shed $8 5/16 to $61 5/8, and Charles Schwab <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SCH)") else Response.Write("(NYSE: SCH)") end if %> lost $3 5/16 to $32 5/8.

QUICK CUTS: As markets around the world headed downward, Chrysler <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: C)") else Response.Write("(NYSE: C)") end if %> crashed for a $7 3/8 loss to $47 1/4, while merger partner Daimler-Benz <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DAI)") else Response.Write("(NYSE: DAI)") end if %> fell $7 27/32 to $89 1/4. Not as hard hit were rival General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GM)") else Response.Write("(NYSE: GM)") end if %>, which skidded $3 1/8 to $60 3/4, and Ford Motor Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: F)") else Response.Write("(NYSE: F)") end if %>, which finished down $1 7/8 to $46 1/2, all on no news... Intel <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> sank $3 1/4 to $79 3/4 after The New York Times reported that the world's largest chip maker will face increasing difficulty in its mainstream emerging markets as it lowers prices in an increasingly competitive market... Microsoft <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %> fell $3 5/16 to $109 1/4 after The Wall Street Journal reported that the software giant is alleged to have violated antitrust laws in a private suit brought two years ago.

Coca-Cola <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KO)") else Response.Write("(NYSE: KO)") end if %> fizzled $4 7/16 to $74 3/4 on concern that economic problems overseas may worsen and cut into the soft drink maker's profits... Consumer and business services company Cendant <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CD)") else Response.Write("(NYSE: CD)") end if %> dropped $1 3/16 to $13 3/8 on word that the SEC has found new problems with the company's accounting methods... American Airlines parent AMR Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMR)") else Response.Write("(NYSE: AMR)") end if %> fell $4 3/8 to $55 3/4 as the Department of Transportation is about to rule on whether Dallas can restrict commercial air service at the city's Love Field airport... Starwood Hotels and Resorts <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HOT)") else Response.Write("(NYSE: HOT)") end if %> was burned for a $2 5/8 loss to $39 7/8 after announcing it will restructure its operations by ending its grandfathered paired-share real estate investment trust (REIT) status and becoming a corporation.

Drug maker Eli Lilly & Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LLY)") else Response.Write("(NYSE: LLY)") end if %> fell $3 1/8 to $74 despite receiving FDA marketing approval for its anti-lung cancer agent Gemzar... Oilfield services companies headed lower on concerns that a weaker world economy could mean lower demand for crude oil and, in turn, for drilling equipment and services. Schlumberger <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %> dropped $3 13/16 to $48, Camco International <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CAM)") else Response.Write("(NYSE: CAM)") end if %> sank $4 7/16 to $56 1/4, Baker Hughes <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BHI)") else Response.Write("(NYSE: BHI)") end if %> was cut $2 1/16 to $19, EVI Weatherford <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EVI)") else Response.Write("(NYSE: EVI)") end if %> weathered a loss of $1 11/16 to $16 3/16, Fluor Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FLR)") else Response.Write("(NYSE: FLR)") end if %> slid $3 to $39 7/8, Veritas (NSYE: VTS) dropped $2 3/4 to $18 7/8, and Smith International (NSYE: SII) fell $2 1/8 to $19 9/16... Discount broker Ameritrade <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMTD)") else Response.Write("(Nasdaq: AMTD)") end if %> lost $1 3/8 to $18 1/2 after warning it expects small profits or breakeven results in fiscal Q1 and Q2 as it spends more on advertising.

Telecommunications network capacity company Ciena <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CIEN)") else Response.Write("(Nasdaq: CIEN)") end if %> dropped another $3 7/16 to $30 13/16 on concern that Tellabs <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TLAB)") else Response.Write("(Nasdaq: TLAB)") end if %> will back out of its proposed deal to acquire Ciena or lower its offer following AT&T's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %> decision not to evaluate Ciena's DWDM systems... Cable TV operator Cablevision Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CVC)") else Response.Write("(NYSE: CVC)") end if %> fell $2 3/4 to $38 1/8 after announcing it will buy 31 movie theaters from Loews Cineplex Entertainment <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LCP)") else Response.Write("(NYSE: LCP)") end if %> for $91.7 million in cash... Battery maker Exide Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EX)") else Response.Write("(NYSE: EX)") end if %> stalled for a $1 9/16 loss to $10 7/8 after CS First Boston lowered its rating on the company to "hold" from "buy"... Satellite operator PanAmSat Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SPOT)") else Response.Write("(Nasdaq: SPOT)") end if %> sank $7 5/16 to $42 1/4 after a Boeing <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BA)") else Response.Write("(NYSE: BA)") end if %> rocket exploded after takeoff last night and destroyed PanAmSat's Galaxy X satellite. Hughes Electronics <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GMH)") else Response.Write("(NYSE: GMH)") end if %>, which built the satellite for PanAmSat, lost $2 13/16 to $39 1/4.

Semiconductor equipment company Applied Materials <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMAT)") else Response.Write("(Nasdaq: AMAT)") end if %> tumbled another $2 1/4 to $27 5/16 after announcing 2,000 job cuts that will result in an unspecified charge and a fiscal Q4 loss... General Instrument Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GIC)") else Response.Write("(NYSE: GIC)") end if %> plunged $4 1/2 to $22 11/16 after leveraged buyout firm Forstmann, Little & Co. said it will sell or distribute its 12.5% stake in the maker of channel selectors for cable television. The firm also plans to part with its 14.7% stakes in both CommScope Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CTV)") else Response.Write("(NYSE: CTV)") end if %>, which lost $3 1/8 to $14 5/16, and General Semiconductor <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SEM)") else Response.Write("(NYSE: SEM)") end if %>, which slipped $1/16 to $6 15/16... Telecommunications holding company Global TeleSystems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GTSG)") else Response.Write("(Nasdaq: GTSG)") end if %> slid $2 3/8 to $31 1/4 after announcing it will acquire about 5.9 million shares of AmTec <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: ATC)") else Response.Write("(AMEX: ATC)") end if %> for $1.35 a share and merge its joint venture in Shanghai into AmTec.

Lighting equipment, chemicals, textile rental, and envelopes company National Service Industries <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NSI)") else Response.Write("(NYSE: NSI)") end if %> plummeted $5 7/8 to $41 13/16 after warning it expects fiscal Q4 EPS to approximate last year's $0.72, which would miss analysts' expectations of $0.84... Office and presentation and display products maker Hunt Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HUN)") else Response.Write("(NYSE: HUN)") end if %> trailed off $1 9/16 to $16 1/4 after announcing it expects fiscal Q3 EPS to exceed the $0.18 it earned a year ago but fall below analysts' mean estimate of $0.31... Psychiatric and substance abuse facilities operator Comprehensive Care Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CMP)") else Response.Write("(NYSE: CMP)") end if %> was pummeled for a $3 15/16 loss to $5 after reporting fiscal Q4 EPS of $0.31, a penny higher than First Call's estimate by a single analyst... Music, video, book, and software distributor Handleman Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HDL)") else Response.Write("(NYSE: HDL)") end if %> lost $1 1/8 to $7 3/4 after reporting a fiscal Q1 loss of $0.12 per share (before unusual items), compared with a loss of $0.19 in the year-earlier period and analysts' mean estimate of a loss of $0.15.

Floral distributor U.S.A. Floral Products <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ROSI)") else Response.Write("(Nasdaq: ROSI)") end if %> was hammered for a $4 loss to $7 1/8 on concerns that it may not be able to maintain earnings growth, which has been fueled by acquisitions. Morgan Stanley Dean Witter lowered its rating on the company to "outperform" from "strong buy"... Marketing services firm Snyder Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SNC)") else Response.Write("(NYSE: SNC)") end if %> shed $4 5/8 to $35 7/8 after announcing it will acquire Clinical Communications Inc. for about $108 million to expand into the medical marketing business... Fire and ambulance services company Rural/Metro Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RURL)") else Response.Write("(Nasdaq: RURL)") end if %> plunged $2 5/8 to $6 5/8 after its chairman and CEO, Warren Rustand, resigned as fiscal Q4 charges for doubtful accounts and severance resulted in a loss... Republic New York Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RNB)") else Response.Write("(NYSE: RNB)") end if %> pulled back $4 5/8 to $45 1/2 after announcing it will take a $110 million Q3 charge for losses in Russian government bonds, which will "substantially" hurt the bank's earnings.

FOOL ON THE HILL
An Investment Opinion
by Dale Wettlaufer

The Speed Way, Pt. 2

As we noted in the first part of this two-part look at NASCAR-related companies, the general investing public and sports fans might not yet be aware of what's going on in stock car racing. Certainly, the marketing of auto racing in general has raised awareness levels over the past couple of years, but as Robert Hagstrom points out in his latest book The NASCAR Way, this particular brand of motorsports is indeed very special.

One very important thing that NASCAR does is to make sure that its fans feel connected to the sport, Hagstrom says. By encouraging as many opportunities as possible for fans to make contact with drivers and feel a part of the sport, which is detailed well in The NASCAR Way, loyalty to sponsors among NASCAR fans is extremely high. This doesn't just translate into some touchy-feely thing about the longevity and value of stock car racing brands, it translates into serious growing cash flow for stock car racing companies.

The oldest of these companies is International Speedway <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ISCA)") else Response.Write("(Nasdaq: ISCA)") end if %>, which we introduced on Monday. What the company has going for it, according to Hagstrom, is a "three-legged stool":

"Think for a moment about the other professional sports organizations. Professional football, basketball, and baseball all receive revenues from fans, sponsors, and television just like NASCAR. But over the past several years, the greatest amount of revenue for stick-and-ball sports has come from television rights, at the expense of fans and sponsors. Now that television rights provide the major funding for these sports, there is less incentive to repay fans and sponsors for their investment.... NASCAR, on the other hand, knows that its fans and sponsors are the financial underpinning of the sport.... The second important element that NASCAR does right is nothing but common sense, but NASCAR does it at a level of sheer genius: Love your customer. The profit system in NASCAR is possible only with the help of its fans. If getting a return on your investment requires you to treat respectfully the people who make your business flourish, then that's what you do." (pp. 201-204)

...[S]tock car racing fans are very aware of who sponsors their sport, and second, they have a strong tendency to purchase the products of sponsoring companies...they are fiercely loyal to these companies. Performance Research discovered that three out of four racing fans consciously purchase products of NASCAR sponsors. In comparison, only half of tennis fans and golf fans have that same loyalty. As for the fans of Major League Baseball, the National Basketball Association, and the National Football League, the Performance Research results indicate that roughly one in three -- less than half the rate of NASCAR fans -- purchase the products of their sport's sponsors. The testimony does not end there. It was further revealed in the survey that NASCAR fans have a higher level of trust toward race sponsors' products -- approximately 60 percent of respondents, compared to only 30 percent of football fans. Finally... over 40 percent of NASCAR's fans purposely switched brands when a manufacturer became a NASCAR sponsor. (The NASCAR Way, pp. 58-60).

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